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Published: 2023-03-29 17:03:17 ET
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EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1


Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Year
Ended December 31, 2022

Tel-Aviv, Israel, March 29, 2023 – Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today reported the publication in Israel of financial statements for the year ended December 31, 2022 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4% through its indirect 50% ownership of U. Dori Energy Infrastructures Ltd. (“Dori Energy”).

On March 29, 2023, Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the “Luzon Group”), an Israeli public company that currently holds the remaining 50% of Dori Energy, which, in turn, holds 18.75% of Dorad, published its annual report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the annual report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial statements of Dorad for the year ended December 31, 2022 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its indirect share of these results (through its holdings in Dori Energy) in its financial statements for this period. In an effort to provide Ellomay’s shareholders with access to Dorad’s financial results (which were published in Hebrew), Ellomay hereby provides a convenience translation of Dorad’s financial results.

Dorad Financial Highlights
 

 •
Dorad’s revenues for the year ended December 31, 2022 – approximately NIS 2,369.2 million.
 

 •
Dorad’s operating profit for the year ended December 31, 2022 – approximately NIS 316.6 million.

Dorad’s financial statements for the year ended December 31, 2022 note that following the outbreak of the coronavirus (Covid-19) in China in December 2019, and the spreading of the coronavirus to many other countries in early 2020, there has been a decline in economic activity in many regions of the world, as well as in Israel. The spreading of the coronavirus caused, among other things, a disruption in the supply chain, a decrease in global transport volume, traffic and employment restrictions declared by the Israeli government and other governments around the world, as well as declines in the value of financial assets and commodities in markets in Israel and around the world. Dorad notes that it is operating in accordance with the guidelines of the Israeli Ministries of Energy and Health on dealing with the coronavirus epidemic, including preparations of the operation and maintenance employees of the power plant and shift work as required. Dorad’s financial statements further note that it continuously examines the options for dealing with material damage to its income as a result of the spread of the virus.

The demand for electricity by Dorad’s customers is seasonal and is affected by, inter alia, the climate prevailing in that season. During 2022, the months of the year were split into three seasons as follows: the summer season – the months of July and August; the winter season - the months of December, January and February; and intermediate seasons – (spring and autumn), the months from March to June and from September to November. There is a higher hourly demand for electricity during the winter and summer seasons, and the average electricity consumption per hour is higher in these seasons than in the intermediate seasons and is even characterized by peak demands due to extreme climate conditions of heat or cold. In addition, Dorad’s revenues are affected by the change in load and time tariffs - TAOZ (an electricity tariff that varies across seasons and across the day in accordance with demand hour clusters), as, on average, TAOZ tariffs are higher in the summer season than in the intermediate and winter seasons. Due to various reasons, including the effects of the increase in the Israeli CPI, impacting interest payments by Dorad on its credit facility, changes to the TAOZ tariff calculation, the spread of Covid-19 and the economic impact of such spread and of actions taken by governments and authorities, the results included herein may not be indicative of full year results in the future.

A translation of the financial results for Dorad as of December 31, 2022 and 2021 and as of and for the each of the three years ended December 31, 2022, 2021 and 2020 is included at the end of this press release. Ellomay does not undertake to separately report Dorad’s financial results in a press release in the future. Neither Ellomay nor its independent public accountants have reviewed or consulted with the Luzon Group, Dori Energy or Dorad with respect to the financial results included in this press release.

About Ellomay Capital Ltd.
 
Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.
 
To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, including:
 

 •
Approximately 35.9 MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel;

•
9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 860MW, representing about 6%-8% of Israel’s total current electricity consumption;

•
51% of Talasol, which owns a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain;

•
Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million (Nm3 per year, respectively;

•
83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;

•
Ellomay Solar Italy One SRL and Ellomay Solar Italy Two SRL that are constructing photovoltaic plants with installed capacity of 14.8 MW and 4.95 MW respectively, in the Lazio Region, Italy; and

•
Ellomay Solar Italy four SRL, Ellomay Solar Italy five SRL and Ellomay Solar Italy Ten SRL that are developing photovoltaic projects with installed capacity of 15.06 MW, 87.2 MW and 18 respectively, in the Lazio Region, Italy that have reached “ready to build” status.
 
For more information about Ellomay, visit http://www.ellomay.com.
 
Information Relating to Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements.  The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including regulatory changes, the decisions of the Israeli Electricity Authority, changes in demand, technical and other disruptions in the operations of the power plant operated by Dorad and changes in the prices of natural gas and the impact of the coronavirus pandemic on Dorad’s operations and projects, including in connection with reductions in the consumption of electricity by Dorad’s customers and the Israeli Electric Company, delays in supply of gas, steps taken by Israeli authorities, regulatory changes, changes in the supply and prices of resources required for the operation of the Dorad’s facilities (and in the price of oil and electricity, and technical and other disruptions in the operation of Dorad), in addition to other risks and uncertainties associated with the Company’s business that are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Kalia Rubenbach (Weintraub)
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com
2

Dorad Energy Ltd.

Statements of Financial Position

   
December 31
    
December 31
  
   
2022
    
2021
  
   
NIS thousands
    
NIS thousands
  
             
Current assets
            
Cash and cash equivalents
    
151,481
      
201,860
  
Trade receivables
    
238,581
      
248,844
  
Other receivables
    
32,809
      
40,289
  
Total current assets
    
422,871
      
490,993
  
                 
Non-current assets
                
Restricted deposit
    
514,543
      
480,476
  
Prepaid expenses
    
32,072
      
33,235
  
Fixed assets
    
3,253,196
      
3,378,466
  
Intangible assets
    
6,404
      
6,038
  
Right of use assets
    
57,486
      
57,530
  
Total non-current assets
    
3,863,701
      
3,955,745
  
                 
Total assets
    
4,286,572
      
4,446,738
  
                 
Current liabilities
                
Current maturities of loans from banks
    
279,506
      
280,753
  
Current maturities of lease liabilities
    
4,645
      
4,622
  
Trade payables
    
228,468
      
324,532
  
Current tax liabilities
    
-
      
21,795
  
Other payables
    
11,439
      
7,100
  
Financial derivatives
    
-
      
268
  
Total current liabilities
    
524,058
      
639,070
  
                 
Non-current liabilities
                
Loans from banks
    
2,211,895
      
2,356,785
  
Other Long-term liabilities
    
17,529
      
15,834
  
Long-term lease liabilities
    
49,292
      
48,871
  
Provision for dismantling and restoration
    
50,000
      
50,000
  
Deferred tax liabilities
    
215,016
      
192,676
  
Liabilities for employee benefits, net
    
160
      
160
  
Total non-current liabilities
    
2,543,892
      
2,664,326
  
                 
Equity
                
Share capital
    
11
      
11
  
Share premium
    
642,199
      
642,199
  
Capital reserve for activities with controlling shareholders
    
3,748
      
3,748
  
Retained earnings
    
572,664
      
497,384
  
                 
Total equity
    
1,218,622
      
1,143,342
  
                 
Total liabilities and equity
    
4,286,572
      
4,446,738
  

3

Dorad Energy Ltd.

Statements of Profit or Loss

   
2022
    
2021
    
2020
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
                   
Revenues
    
2,369,220
      
2,103,911
      
2,407,221
  
                         
Operating costs of the power plant
                        
Energy costs
    
544,118
      
428,051
      
522,110
  
Electricity purchase and infrastructure services
    
1,088,127
      
1,053,997
      
1,185,225
  
Depreciation and amortization
    
239,115
      
225,715
      
237,575
  
Other operating costs
    
157,189
      
114,360
      
155,368
  
                         
Total cost of power plant
    
2,028,549
      
1,822,123
      
2,100,278
  
                         
Profit from operating the power plant
    
340,671
      
281,788
      
306,943
  
                         
General and administrative expenses
    
24,066
      
24,502
      
24,926
  
Other incomes
    
-
      
11,603
      
1,279
  
                         
Operating profit
    
316,605
      
268,889
      
283,296
  
                         
Financing income
    
52,131
      
4,694
      
3,056
  
Financing expenses
    
271,116
      
219,013
      
157,428
  
                         
Financing expenses, net
    
218,985
      
214,319
      
154,372
  
                         
Profit before taxes on income
    
97,620
      
54,570
      
128,924
  
                         
Taxes on income
    
22,340
      
12,844
      
29,622
  
                         
Profit for the year
    
75,280
      
41,726
      
99,302
  

4

Dorad Energy Ltd.

Statements of Changes in Equity

               
Capital
              
               
reserve for
              
               
activities with
              
         
Share
    
controlling
    
Retained
        
   
Share capital
    
premium
    
shareholders
    
earnings
    
Total equity
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
                               
For the year ended December 31, 2022
              
                               
Balance as at January 1, 2022
    
11
      
642,199
      
3,748
      
497,384
      
1,143,342
  
                                         
Profit for the year
    
-
      
-
      
-
      
75,280
      
75,280
  
                                         
Balance as at December 31, 2022
    
11
      
642,199
      
3,748
      
572,664
      
1,218,622
  
                                         
For the year ended December 31, 2021
          
                                         
Balance as at January 1, 2021
    
11
      
642,199
      
3,748
      
555,658
      
1,201,616
  
                                         
Dividend to the Company’s shareholders
    
-
      
-
      
-
      
(100,000
 )
    
(100,000
 )
Profit for the year
    
-
      
-
      
-
      
41,726
      
41,726
  
                                         
Balance as at December 31, 2021
    
11
      
642,199
      
3,748
      
497,384
      
1,143,342
  
                                         
For the year ended December 31, 2020
                  
                                         
Balance as at January 1, 2020
    
11
      
642,199
      
3,748
      
576,356
      
1,222,314
  
                                         
Dividend to the Company’s shareholders
    
-
      
-
      
-
      
(120,000
 )
    
(120,000
 )
Profit for the year
    
-
      
-
      
-
      
99,302
      
99,302
  
                                         
Balance as at December 31, 2020
    
11
      
642,199
      
3,748
      
555,658
      
1,201,616
  

5

Dorad Energy Ltd.

Statements of Cash Flows

   
2022
    
2021
    
2020
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
                   
Cash flows from operating activities:
                  
Profit for the year
    
75,280
      
41,726
      
99,302
  
Adjustments:
                        
Depreciation, amortization, and fuel consumption
    
242,345
      
228,099
      
241,288
  
Taxes on income
    
22,340
      
12,844
      
29,622
  
Financing expenses, net
    
218,985
      
214,319
      
154,372
  
     
483,670
      
455,262
      
425,282
  
                         
Change in trade receivables
    
9,991
      
48,875
      
(4,959
)
Change in other receivables
    
7,480
      
(18,888
)
    
1,284
  
Change in trade payables
    
(127,907
)
    
22,926
      
16,627
  
Change in other payables
    
4,339
      
3,292
      
(6,700
)
Change in Other long-term liabilities
    
1,695
      
15,834
      
-
  
     
(104,402
)
    
72,039
      
6,252
  
                         
Taxes on income paid
    
(21,795
)
    
-
      
-
  
                         
Net cash provided by operating activities
    
432,753
      
569,027
      
530,836
  
                         
Cash flows from investing activities:
                        
Proceeds from (payment for) settlement of financial derivatives
    
13,652
      
392
      
(4,318
)
Investment in long-term restricted deposits
    
-
      
(53,175
)
    
(6,000
)
Investment in fixed assets
    
(110,715
)
    
(72,530
)
    
(48,309
)
Investment in intangible assets
    
(1,810
)
    
(2,020
)
    
(4,738
)
Interest received
    
6,433
      
1,584
      
3,046
  
                         
Net cash used in investing activities
    
(92,440
)
    
(125,749
)
    
(60,319
)
                         
Cash flows from financing activities:
                        
Repayment of lease liability principal
    
(4,726
)
    
(4,624
)
    
(4,523
)
Repayment of loans from banks
    
(255,705
)
    
(210,449
)
    
(195,359
)
Dividends and exchange rate paid
    
-
      
(100,000
)
    
(123,739
)
Interest paid
    
(159,804
)
    
(162,781
)
    
(170,003
)
Net cash used in financing activities
    
(420,235
)
    
(477,854
)
    
(493,624
)
                         
decrease in cash and cash equivalents
    
(79,922
)
    
(34,576
)
    
(23,107
)
Effect of exchange rate fluctuations on cash and
                        
 cash equivalents
    
29,543
      
(10,643
)
    
4,165
  
Cash and cash equivalents at beginning of year
    
201,860
      
247,079
      
266,021
  
                         
Cash and cash equivalents at end of year
    
151,481
      
201,860
      
247,079
  

6